Press Release
Banquo Credit Management licenses the Principia System as its credit portfolio management solution
Jersey City, New Jersey – February 2, 2005 – Principia Partners LLC, a leading technology provider of comprehensive front-to-back office solutions for managing highly complex structured financial assets, liabilities and derivatives, today announced that Banquo Credit Management LLP has launched its first portfolio of fixed income investments underlying the MTNs issued by Diversification Notes ONE plc (DN 1), and is live with the Principia System as its credit portfolio management solution.
The London-based pure credit manager is leveraging the powerful portfolio management capabilities of the Principia System to process investments in DN 1’s portfolio of diversified investment grade bonds and credit instruments. The investment portfolio is funded in the market and immunized against currency and interest rate risk. “Essentially DN 1’s entire balance sheet will be managed on the Principia System,” states Kevin Regan, joint CEO at Banquo Credit Management. The system enables Banquo to model, price, simulate, hedge, stress and capture trading strategies and simulations.
“The software’s exceptionally flexible trade structuring capabilities enhances our ability to manage a conservative capital preservation strategy using just about any type of credit risk instrument,” added Regan. “Banquo utilizes a conservative approach to credit management that is dynamic, continuous and coordinated, focusing on three specific elements: estimation of risk and return for each exposure for selection and sizing; diversification of the portfolio by ‘expected loss’, and active portfolio management.”
After an extensive system search, Banquo selected the Principia System on the basis of its successful experience in satisfying the intense risk management and reporting requirements of Structured Investment Vehicles (SIVs). Banquo’s risk management focuses on a system of operating limits and hard limits based on the matrix monitored by the rating agencies as requisites for their Structured Investment Vehicle (SIV) ratings. “The Principia System allowed us to rapidly bring our special product expertise to the market,” said Peter Luthy, joint CEO at Banquo.
“In Principia, Banquo has selected a market-tested portfolio management platform that will scale with their evolving credit management requirements,” states Dr. Douglas Long, Director of Product Marketing at Principia Partners.
About Banquo Credit Management LLP
Banquo Credit Management LLP is a conservative pure credit
investment manager. Banquo was founded in 2002 by Joint Chief Executives,
Peter Luthy and Kevin Regan, because of the perceived need for
a new approach to credit management. They were joined by fellow
Managing Partners: Mark Boylan, Mark Goodman, and Bill Mendenhall
who acceded after February 2003. The Managing Partners have been
joined by a dynamic team of investment professionals with a wide
range of experience in financial services and the requisite skill
sets to provide added value to Banquo’s diverse client base.
See www.banquocredit.com
About Principia Partners
Principia Partners LLC (Principia) provides a comprehensive single platform solution for the end-to-end management of structured finance investments. Global financial institutions and independent asset managers have used the award winning Principia Structured Finance Platform since 1995 to unify investment analysis, portfolio management, risk surveillance, accounting and operational control across the breadth of structured credit assets, fixed income investments and complex derivatives.
For over 15 years Principia’s mission has been to help investors independently address the deal specific investment and cashflow analysis, valuation, risk management, reporting and due diligence requirements of structured credit investments and portfolios. Its dedicated support and continued development of functionality for structured finance instruments is accompanied by a proven and fully integrated derivative valuation framework. This overall credit investment and market risk solution delivers the robust backbone necessary for deeper investment analysis, proactive risk surveillance and operational control across the credit investment business.
Principia is based in New York, with an office in London and a technology center in Conshohocken, Pennsylvania. Principia SFP was awarded the Credit Technology Innovation award by Credit magazine in 2008, 2009 and 2010.
For press information contact:
Ben Jarrold
Tel: + 44 (0) 20 7618 1370
Email: Jarrold@ppllc.com